1 From Ingredients to Platforms From Ingredients to Platforms Showcase: Showcase: Planning for Platform Supply Chain Quality Planning for Platform Supply Chain Quality Mary Doyle Mary Doyle Director, Corporate Platform Office, Intel Corporation Director, Corporate Platform Office, Intel Corporation Ann-Marie Lamb Ann-Marie Lamb CPLG Quality & Reliability Researcher, CPLG Quality & Reliability Researcher, Six Sigma Blackbelt Quality Engineer, Intel Corporation Six Sigma Blackbelt Quality Engineer, Intel Corporation
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1 From Ingredients to Platforms Showcase: Planning for Platform Supply Chain Quality Mary Doyle Director, Corporate Platform Office, Intel Corporation.
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From Ingredients to PlatformsFrom Ingredients to Platforms
Showcase: Showcase: Planning for Platform Supply Chain QualityPlanning for Platform Supply Chain Quality
Mary Doyle Mary Doyle Director, Corporate Platform Office, Intel CorporationDirector, Corporate Platform Office, Intel Corporation
ChinaChinanew markets, new challenges?new markets, new challenges?
– More than 350M subscribersMore than 350M subscribers– Rate of growthRate of growth
– Number of SMS sentNumber of SMS sent
– Cultural affordances & practices give Cultural affordances & practices give rise to unique applications, services & rise to unique applications, services & anxieties anxieties
– The lunar almanac every dayThe lunar almanac every day– A novella subscription service, Chinese A novella subscription service, Chinese
opera-like opera-like mobisodesmobisodes– Chinese govt. bansChinese govt. bans
– New work-arounds to unexpected New work-arounds to unexpected problemsproblems– Charging stations, pagers, codesCharging stations, pagers, codes
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KoreaKoreanew models of connectivity?new models of connectivity?
– Korea is often held up as model Korea is often held up as model of technology uptakeof technology uptake
– Record broadband uptake Record broadband uptake – 80% of wired homes use high speed 80% of wired homes use high speed
data connectionsdata connections
– Korea also continues to have the Korea also continues to have the fastest growing cyber-café fastest growing cyber-café market in worldmarket in world– 20,000 PC-Bangs in Seoul alone, up 20,000 PC-Bangs in Seoul alone, up
from 13,000 4 years agofrom 13,000 4 years ago
– Korean homes are very privateKorean homes are very private– A long history of gaming & A long history of gaming &
Built on IntelBuilt on Intel®® architecture architecture
Investigational device, not presently available for commercial distribution
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Our homes …Our homes … share 6 core human values share 6 core human values
escape togetherness control
access advancement love & spirituality
INTEL® INTEL® VIIV™VIIV™ TECHNOLOGY TECHNOLOGY
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User Concerns for MobilityUser Concerns for Mobility
PerformancePerformance
WeightWeight
Battery LifeBattery Life
WirelessWireless
Ultra Mobile PC
The Next Step in PC MobilityThe Next Step in PC Mobility
LaunchedLaunchedQ1’06Q1’06
Entertainment/ProductivityNotebook
Sub-Notebook
Thin and LightNotebook
Low CostLow Cost
LocalizedLocalized
Connectivity Connectivity
Geo Specific Geo Specific CharacteristicsCharacteristics
User Concerns in the ChannelUser Concerns in the Channel
Ruggedized “Community PC” Platform for IndiaRuggedized “Community PC” Platform for India“Jaagruti” (“Awakening”) Initiative“Jaagruti” (“Awakening”) Initiative
Developed exclusively to meet the needs of rural villages and Developed exclusively to meet the needs of rural villages and communities in Indiacommunities in India
Used in Internet “kiosks” run by local entrepreneurs to provide Used in Internet “kiosks” run by local entrepreneurs to provide access to online services such as e-Government forms, access to online services such as e-Government forms, education and medical advice education and medical advice
Brings technology access where weather and unreliable power Brings technology access where weather and unreliable power compromise typical PCscompromise typical PCs
– Ruggedized chassisRuggedized chassis – CPSUCPSU – Low power consumptionLow power consumption – Access ControlAccess Control
Intel Q & R Intel Q & R employees… employees… “we’ve done “we’ve done 1000s of FMEAs, 1000s of FMEAs, we never thought we never thought to adapt tool for to adapt tool for whole SC view”whole SC view”
What supply chain What supply chain quality metrics quality metrics could be used to could be used to track causes of track causes of failurefailure
Failure Modes & System Name: Intel Supply Chain FMEA Number:Effects Analysis Major Function: Deliver parts to customers Page:
Prepared By: Team INTEL Date:
Function or Requirement
Potential Failure Modes
Potential Causes of Failure
Occurr
ence
Local EffectsEnd Effects on Product, User, Other Systems S
everity
Detection Method/ Current Controls
Dete
ction
RPN
Actions Recommended to
Reduce RPNRelevant SC Indicators
Planning Faulty estimation of forecast
Inadequate understanding of existing market
1
Inventory imbalance
Cost and possibly delay 3
Inventory turns
10 30
Inadequate understanding of
new market 6
Inventory imbalance
Cost and possibly delay
3
Inventory turns
10 180
Hire independent third party
consultants
Accuracy of forecasting techniquesSupply chain cost as percent of salesInventory turnsCash to cash cycle timeOrder lead timeSudden
unforseeable changes in
market 5
Inventory imbalance
Cost and possibly delay
3
Inventory turns
10 150
Hire independent third party
consultants. Additional customer
surveys
Accuracy of forecasting techniques; Responsiveness to urgent deliveries; Inventory TurnsCash to cash cycle timeSupply chain cost as percent of salesOrder lead timeFaulty Simulation
Model 1Inventory imbalance
Cost and possibly delay 3
Inventory turns10 30
Judgement Error
4
Inventory imbalance
Cost and possibly delay
3
Inventory turns
10 120
Hire independent third party
consultants
Accuracy of forecasting techniquesWorker standardsWorker qualityCash to cash cycle timeOrder lead time
Inadequate Capacity Planning
Lack of alternate production plans 3
Inventory imbalance
Cost and possibly delay 3
Inventory turns10 90
Simulation Error1
Inventory imbalance
Cost and possibly delay
3Inventory turns
10 30
Inadequate Human Resources Allocation
Erroneous Selection of employees
1
Manufacturing delay
Cost and delay
3
Inventory turns and Manufacturing
Delay6 18
Poor judgement of capacity
requirements1
Manufacturing delay
Cost and delay3
Inventory turns and Manufacturing
Delay6 18
Lack of skilled worker
availability1
Manufacturing delay
Cost and delay3
Inventory turns and Manufacturing
Delay4 12
Concept Design
Dimensional Error
Oversight2
Product not functioning
System failure 8 Design reviews or assembly/test
7 112 Strict peer reviews and design reviews
Worker Standards; Planned Process Time
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Platform/Product: Platform/Product: Functional or Innovative?Functional or Innovative?
Major Supply Chain Functions
Functional S.C. Features Innovative S.C. Features
Planning (demand & supply)
Simulation & modeling based on past sales data is effective due to predictable demand.
Less automation and more direct personnel involvement is required to keep up with changing dynamics. Market surveys and third party focus groups are utilized.
Design Oversight
Little design oversight is necessary due to established product success & longer life cycles.
More design oversight is necessary to ensure product flexibility is maintained. Late point differentiation/postponement is emphasized to increase downstream flexibility.
ManufacturingOversight
Automated insight into capacity utilization, statistical process control (SPC), and defect rates is important to maximize physical efficiency of supply chain.
Less emphasis is placed on manufacturing oversight as compared to functional supply chain, however automated SPC tracking may still be utilized.
Use of Third Party Logistics (3PL) company to ensure maximum efficiency of getting products into customer’s hands. 3PL represents a lower cost alternative to 4PL.
Use of Fourth Party Logistics (4PL) company to ensure an optimized delivery/logistics solution is developed for each product’s unique needs.
Order Mgmt Automated order collection and evaluation with Enterprise Resource Planning (ERP) software. Minimal personnel involvement is required.
Automated order collection, however more direct personnel involvement is required for order evaluation to ensure responsiveness & flexibility needs are met.
Customer Service
3PL provider handles return/repair requests with minimal direct Intel involvement. Refund/replace may be more attractive than repair for functional products.
4PL coordinates returns/repairs, with some Intel involvement. Decision to replace/repair/refund will vary depending on specific product characteristics.
[1] Fisher, Marshall L., “What Is the Right Supply Chain for Your Product?”, The Harvard Business Review, March-April, 1997.
Delivery to requested dock date is seen to have Delivery to requested dock date is seen to have high worth but very low cost. It is therefore one high worth but very low cost. It is therefore one that should be furthered explored in order to gain that should be furthered explored in order to gain its full benefits. its full benefits.
Order lead time is seen to have high worth but Order lead time is seen to have high worth but reasonably low cost, it is therefore one that should be reasonably low cost, it is therefore one that should be further investigated & explored. further investigated & explored.
On the other hand, SC cost as percent of sales has On the other hand, SC cost as percent of sales has relatively high cost but low worth - aligns with nature relatively high cost but low worth - aligns with nature of innovative products & how supply chain should not of innovative products & how supply chain should not focus too much on the cost side, but rather on the focus too much on the cost side, but rather on the agility, flexibility & service level to the customers. agility, flexibility & service level to the customers.
Project QFD - Intel Digital Health PlatformProject QFD - Intel Digital Health Platform
Quality Function DeploymentQuality Function Deployment
From this QFD phase II, three From this QFD phase II, three critical actions/tasks in the project critical actions/tasks in the project implementation were identified. implementation were identified. These top three tasks are:These top three tasks are:
– Robust design/FMEA/QFDRobust design/FMEA/QFD– Efficient manufacturing/ QA processEfficient manufacturing/ QA process– Understanding FDA regulationsUnderstanding FDA regulations
These three activities scored These three activities scored significantly higher than the others significantly higher than the others in the QFD Phase II scoring in the QFD Phase II scoring
For the Digital Health platform in For the Digital Health platform in particular, activities associated particular, activities associated with creating robust design, with creating robust design, developing efficient manufacturing developing efficient manufacturing & understanding FDA regulations & understanding FDA regulations are critical phases to a successful are critical phases to a successful program & must be looked at for program & must be looked at for monitoring with supply chain monitoring with supply chain quality indicatorsquality indicators
PHASE II QFD Project QFD
r Engineering Metrics Ph
ase
I R
elat
ive
Wei
ghts
Und
erst
andi
ng F
DA
Reg
ulat
ions
Eng
agin
g F
DA
Rob
ust
Des
ign/
FM
EA
/QF
D
Eff
icie
nt M
anuf
actu
ring
/QA
Pro
cess
Eff
icie
nt l
ogis
tics
Mar
keti
ng C
ampa
ign/
lobb
y do
ctor
s/T
V a
ds
Mar
ket
Dem
and
Res
earc
h
Eff
icie
nt S
ervi
ce
Ope
rati
ons
Pla
nnin
g/R
esea
rch
Preliminary Design Duration 15% 9 3 9 3 1# of features 18% 3 1 3 9 3 9 1Manufacturing Duration 4% 1 3 9 9Clinical Trials Duration 6% 9 3 1 1% failures during trials 6% 9 3# recorded user failures per year 14% 1 9 3 3 1Industry Product Ranking 19% 1 9 3 1 9 3# of insurance company approvals 18% 9 3 3 3
Raw score 4.2
0.8
4.9
4.6
0.7
2.8
2.1
1.2
0.7
0.0
0.0
Relative Weight 19
%
4% 22%
21%
3% 13%
10%
5% 3% 0% 0%
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Cost – Worth for Potential Digital Health Cost – Worth for Potential Digital Health Platform Project TasksPlatform Project Tasks
Understanding FDA Understanding FDA Regulations is one of Regulations is one of the most critical steps the most critical steps while the cost is while the cost is relatively low, so relatively low, so
Resources should be Resources should be more focused on this more focused on this areaarea
The other important The other important tasks are very much tasks are very much aligned with the cost aligned with the cost or time input or time input
– CollaborationCollaboration• Internal cross-functional collaboration is critical to successInternal cross-functional collaboration is critical to success• External cross-industry collaboration: new influence points, new insightsExternal cross-industry collaboration: new influence points, new insights
– Cross-Platform and Disruptive Opportunities Cross-Platform and Disruptive Opportunities • Cross-platform impact is critical and challengingCross-platform impact is critical and challenging• Valuation must be concrete to impact platform decisions (e.g. units)Valuation must be concrete to impact platform decisions (e.g. units)• Good opportunities can still fall through the cracks: challenge existing businessesGood opportunities can still fall through the cracks: challenge existing businesses• Determine by product/platform if it is functional or innovative for planning purposesDetermine by product/platform if it is functional or innovative for planning purposes
– Adoption ChallengesAdoption Challenges• Metrics drive behaviorMetrics drive behavior• Change is ‘sticky’ when implemented through near term deliverablesChange is ‘sticky’ when implemented through near term deliverables• The level of adoption can vary wildly The level of adoption can vary wildly
– ResourcingResourcing• Demand on usage modeling is very high, user centered resources are critical pathDemand on usage modeling is very high, user centered resources are critical path